Whether browsing Cape Town property articles or arriving at Cape Town International Airport, visitors and readers alike are typically directed towards the Atlantic Seaboard and City Bowl districts, or even the Constantia area in the Southern Suburbs, as these are seen as the dominant property markets and lifestyle areas in the metropolitan and its surrounds – if not in South Africa.
The Cape Winelands have always been somewhat overshadowed by these three more established or affluent areas when it comes to property.
However, unbeknownst to many, the real powerhouse of the Western Cape residential property market in terms of total sales value lies along or near the R44 route, which winds from the Helderberg region through the Cape Winelands towns of Stellenbosch, Paarl, Franschhoek, and Wellington.
According to CMAinfo, sales in the four towns of Stellenbosch, Paarl, Franschhoek, Wellington, and the Helderberg area, generated approximately R13 billion in 2023, translating to roughly R1,08 billion in residential sales per month.
Based on the first quarter’s residential sales figures of R65 billion in 2024, the projected total annual residential sales in South Africa for 2024 are estimated to reach around R260 billion. The four Cape Winelands towns and the Helderberg combined contribute approximately 5% to this total.
The Cape Winelands market achieved a monthly average of R1,08 billion in 2023, which is 35% more than the combined monthly average of the Atlantic Seaboard and Cape Town City Bowl property markets, which stood at around R703 million. Propstats data from March 2024 indicates the individual Rand value of these two luxury property markets to be R396 million (Atlantic Seaboard) and R306 million (City Bowl).
The Helderberg area boasts the highest residential sales value within the Cape Winelands, with total sales reaching R6,71 billion in 2023. This breaks down to R4,81 billion in Somerset West, R1,06 billion in Strand, and R988 million in Gordon’s Bay. Notably, the Helderberg generated roughly R457 million more in sales than the combined residential sales of Stellenbosch, Paarl, Franschhoek, and Wellington, which amounted to R6,27 billion.
Therefore, the monthly sales volume of the Helderberg property market alone is only 21% lower than the combined monthly sales turnover of the Atlantic Seaboard and City Bowl property markets. The Helderberg achieved approximately R561 million per month in residential sales during 2023, compared to the R703 million achieved in March 2024 by the combined Atlantic Seaboard and City Bowl areas.
Author Benhard Wiese – CCH (Cape Coastal Homes)
